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Ferronordic AB (publ) Interim Report January - March 2020

07:30 / 13 May 2020 Ferronordic Press release

Growth in Russia/CIS. Start of operations in Germany

  • Revenue increased by 55% to SEK 1,118m (SEK 723m)
  • Operating profit decreased by 9% to SEK 51m (SEK 56m)
  • Operating margin decreased to 4.6% (7.7%)
  • The result for the period decreased by 56% to SEK 20m (SEK 46m)
  • Earnings per ordinary share amounted to SEK 1.39 (SEK 3.19)
  • Cash flows from operating activities amounted to SEK 101m (SEK -116m)

SEK M Q1 Q1 %
2020* 2019
Revenue 1 118 723 55%
Operating profit 51 56 -9%
Result for the period 20 46 -56%
Earnings per share 1.39 3.19 -56%

Gross margin 16.3% 20.2%
Operating margin 4.6% 7.7%

Return on capital employed 23% 33%
Working capital / Revenue 13% 8%
Net debt / (cash) 531 (59)

* Q1 2020 includes consolidation of Ferronordic's operations in Germany

Lars Corneliusson, CEO Ferronordic, comments: "Against the backdrop of the uncertain business environment caused by the outbreak of COVID-19, Q1 2020 was relatively strong for Ferronordic. In Russia/CIS, revenue increased 17% while our market was largely flat. In Germany, we successfully launched aftermarket and sales operations for Volvo and Renault Trucks. Although the German market was negatively affected by the restrictions imposed, with truck registrations declining 26% and the aftermarket contracting, we could keep all workshops open and achieved results in line with our expectations. Our total revenue amounted to SEK 1,118m. Operating profit in Russia/CIS grew 8% while the Group operating result declined 9% to SEK 51m, due to the negative contribution from Germany. Cash flows from operations were strong as net working capital decreased. Despite the additional debt related to our German operations, total net debt declined. Our main concern now relate to the uncertainty caused by COVID-19, most immediately with regards to the health and safety of our employees and our customers. I am grateful and proud of the way our employees have adapted to challenging conditions and made contributions to our business, our customers' operations and to our community. For the rest of 2020, we are likely to face various degrees of disruption in supply, demand and customer interfacing. We are taking measures to maintain the highest level of service to our customers, protect our employees, strengthen our liquidity and reduce costs. Given this outlook and in line with these measures, the Board has revised its proposal and instead proposes to the AGM in 2020 that no dividend be paid. We are confident that our business model, which is built around a great team and a robust aftermarket business, will once again prove resilient. In a longer perspective, we remain positive as we believe that the underlying fundamentals and business opportunities in our markets are strong."

About Ferronordic

Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer of Volvo Construction Equipment and certain other brands in all of Russia and Kazakhstan, aftermarket partner of Volvo Trucks and Renault Trucks in part of Russia, and dealer of Volvo Trucks and Renault Trucks in part of Germany. The company also offers contracting services where it owns and operates equipment to carry out works for customers. Ferronordic began its operations in 2010 and now has approx. 100 outlets and about 1,400 employees. Ferronordic's vision is to be regarded as the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm.

Financial Calendar 2020/2021

Interim report January-June 2020                                13 August 2020

Interim report January-September 2020                      12 November 2020

Year-end report January-December 2020                   19 February 2021

For more information, please contact:

Erik Danemar, CFO, Tel: +46 73 660 72 31, or email: 

Ferronordic AB (publ)

Nybrogatan 6

114 34 Stockholm

Corporate ID no. 556748-7953

Phone:   +46 8 5090 7280

This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 13 May, 07:30 CET.

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